Kenya has officially broken ground on its most consequential upstream oil project to date. Gulf Energy E&P BV awarded Baker Hughes a fully integrated contract to drill and complete 43 wells in the South Lokichar Basin in Turkana County, the first project of its kind for Baker Hughes in Sub-Saharan Africa. The scope spans well construction, artificial lift services, completions, intervention, and measurement.
The groundbreaking ceremony in Turkana East was led by Energy and Petroleum Cabinet Secretary Opiyo Wandayi and EAC and ASALs Cabinet Secretary Beatrice Askul.
A $6 Billion Bet on Turkana
Gulf Energy has pledged $6 billion — roughly KSh 774 billion — toward full-scale development of the basin. The company acquired Tullow Oil’s entire Kenya portfolio in July last year through its subsidiary Auron Energy E&P Limited, in a deal valued at KSh 15.5 billion ($120 million). That transaction handed Gulf Energy access to an estimated 560 million barrels of recoverable oil in the South Lokichar Basin.
Wandayi confirmed that production is on track. “The company involved has given us assurance as late as last week that they are on course,” he told the National Assembly Departmental Committee. First crude exports now carry a firm target. “We are confident that by the end of this year, before 31 December, we shall have the first tranche of crude oil moving to the Port of Mombasa for export,” he added.
Presided over the groundbreaking of the South Lokichar Oil Project in Turkana East, a key milestone in Kenya’s journey to commercial oil production under President @WilliamsRuto.
Joined by CS Beatrice Askul, D.G Dr. John Erus, former Governor Josephat Nanok, and several MPs. pic.twitter.com/TEaJcBsbOU
— Opiyo Wandayi (@OpiyoWandayi) April 24, 2026
Early output projections stand at 60,000 to 100,000 barrels per day.
Export Route and Refinery Prospects
Initial shipments will move by truck to Mombasa, replicating the method used under Tullow Oil’s Early Oil Pilot Scheme in 2018, when Kenya trucked 2,000 barrels from the Amosing 1 and Ngamia 1 wells to test its export readiness. A permanent 895-kilometre pipeline to the port of Lamu remains under consideration for long-term logistics.
Kenya is also fielding proposals from private investors seeking to build a domestic oil refinery. Wandayi noted the government’s openness. “We are getting a number of proposals from various private partners who would wish to invest in this, and we are telling them that if the mathematics adds up, we shall support them in the usual way.”
Community, Revenue, and Security
Turkana County Deputy Governor John Erus announced plans for a dedicated committee to negotiate revenue-sharing terms with Gulf Energy. The company has separately committed to local job creation, business development, and social investment across Turkana.
On security, the Kenya Defence Forces will oversee water supply from Turkwell Dam to Turkana and West Pokot, as the government runs parallel operations to stabilise the region ahead of full drilling activity.
Kenya’s Place in East Africa’s Oil Story
Should December exports proceed as planned, Kenya joins Uganda and South Sudan as East Africa’s oil-producing nations. The project also represents the largest private-sector upstream petroleum investment in Kenya’s history, backed by President Ruto’s administration through tax incentives and active exploration rounds.
